Hexing(603556) 财通证券·2024-06-24 00:22Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [10][42]. Core Insights - The company is experiencing significant growth in overseas markets, with a notable increase in revenue from smart electricity meters and distribution automation products. The overseas revenue reached 27.91 billion yuan in 2023, representing a year-on-year growth of 51.27% and accounting for 66.46% of total revenue [33][43]. - The domestic market is also expected to benefit from the recovery in real estate policies, which will drive demand for ring network cabinets and other distribution equipment [2][4]. - The company has a strong competitive position in the smart electricity meter market, with stable market share and expected growth in both domestic and international markets [43][66]. Summary by Sections 1. Company Overview - The company primarily focuses on smart electricity meters, with a growing emphasis on distribution and renewable energy sectors. It has established a strong presence in both domestic and international markets [1][75]. - The company has a concentrated shareholding structure, with the actual controller holding 22.02% of shares, ensuring stability in management [59][78]. 2. Revenue and Profitability - The company has shown robust revenue growth, with 2023 revenue reaching 42 billion yuan and a net profit of 9.82 billion yuan. The revenue growth rate is projected to remain high, with expectations of 25.02% for 2024 [44][66]. - The gross margin for the smart electricity meter business has improved significantly, reaching 43.85% in 2023, which is higher than the industry average [102][64]. 3. Market Dynamics - The domestic smart electricity meter market is on an upward cycle, with stable bidding volumes from major state-owned enterprises. The expected bidding volume for 2024 is projected to exceed previous highs [86][100]. - The overseas market is expanding rapidly, with the company leveraging its local strategies to enhance competitiveness and establish a strong foothold in various regions [21][33]. 4. Future Outlook - The company anticipates continued growth in both domestic and international markets, with a focus on enhancing its distribution automation and renewable energy segments. The expected revenue for 2024-2026 is projected to be 52.51 billion, 63.26 billion, and 76.16 billion yuan, respectively [41][66]. - The company is well-positioned to capitalize on the increasing demand for smart grid solutions globally, particularly in emerging markets [90][102].